1650 Arch St., Center City office tower with $43M debt heads to auction

Paul Schwedelson / Philadelphia Business Journal

The foreclosure case for 1650 Arch St. could be nearing an end.

1650 Arch Investor LP, the affiliate of ASI Management that owns the 553,000-square-foot office building, is scheduled to be sold at a public auction on Nov. 5. Bidding will be conducted online, as well as in person in front of the New York Supreme Court building in Manhattan, according to a published auction notice.

The half-vacant Center City property was hit with a foreclosure complaint in the Philadelphia Court of Common Pleas in June and has been in receivership since July.

An affiliate of Wilmington-based Delphi Financial Group originated a $75.8 million loan on 1650 Arch St. to Philadelphia-based ASI Management in 2018, according to the foreclosure complaint. The loan’s maturity date was later extended two years to July 2024, but the complaint shows ASI Management did not pay off the debt.

The auction notice states the loan has an outstanding balance of $43 million.

ACORE Capital Mortgage is the administrative agent for the loan and is offering 1650 Arch Investor LP for sale on behalf of the lender. OPEX CRE Management is the property’s receiver. Colliers’ Carl Neilson is leading the auction process.

As the debtholder, Delphi Financial Group has the option to join the bidding and use the full amount it is owed as a credit toward the purchase price. The scenario is similar to the process that played out with the Wanamaker building earlier this year, when New York real estate firm TF Cornerstone leveraged the $120 million in debt it held on that distressed office property to acquire it at auction and complete a foreclosure process.

Full story:  https://www.bizjournals.com/philadelphia/news/2025/10/20/center-city-office-tower-auction-date-set-loan.html

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